02282 Should I Buy

The analyst rating for MGM CHINA was downgraded to Neutral by JPMorgan due to several factors: 1. Weak Earnings Per Share (EPS): The company's EPS was unexpectedly weak, and the final dividend per share (DPS) was about 10% lower than the broker's market estimations. 2. Dividend Payout Ratio: Although the dividend yield of 5.5% is considered decent, it is lower than the average payout ratio of about 70% among peers, raising market expectations for MGM CHINA. 3. Future EPS Decline: There is an expected 11% decline in MGM CHINA's FY2026 EPS due to higher license fees, which could lead to a further drop in dividend yield unless the company increases its dividend payout ratio or issues a special dividend, which currently seems unlikely. These concerns led to the downgrade in the analyst's rating.